On Friday, the United States Ministry of Justice continued a large real estate company, alleging that the company's algorithmic software allows owners of the country to set rent at artificially high prices.
THE trialJoined by several states, including California, focuses on the software of the company based in Texas Realpage. The software is used by many owners to fix the prices of rents for vacant units and renewal rates for existing tenants.
In a truly competitive market, the authorities said, the owners would be forced to compete with each other, which contributes to reducing the rental costs for the Americans.
However, according to the trial, Realpage allowed the opposite.
By becoming a customer, the so -called competitors' owners share non -public information – such as occupation and rents on executed leases – with Realpage, which then uses this data to recommend rents in individual properties.
“While the Americans find it difficult to afford housing, Realpage facilitates the coordinates of the owners to increase rents,” he added Atty. General Jonathan Kanter said in a statement.
Realpage did not immediately return a comment request.
The company had previously called similar allegations False and deceptiveSaying that customers can refuse their recommendations, which sometimes include the drop in rent.
But in its complaint, the Ministry of Justice highlighted the cases where Realpage described its software as a tool to maximize the rent and surpass the market. The authorities also allegedly alleged that the company made more difficult for the owners to reject its recommendations than to accept them.
“There is a greater good in everyone who succeeds in relation to trying it essentially to compete against each other in a way that maintains the whole industry,” said a Realpage framework, according to the trial.
At another time, Realpage described its tools as guaranteeing that the owners “lead all possible occasions to increase the price even in the most trendy or unexpected conditions”, indicates the complaint.
The antitrust application was at the center of the Biden administration. The Ministry of Justice continued large companies such as Google And Apple, alleged that they had anti -competitive behaviors.
vice-president Kamala Harris also criticized the use of rent algorithms according to the presidency.
In a press release, Atty. General Merrick B. Garland said that the Ministry of Justice would continue to apply antitrust laws aggressively.
“Americans should not have to pay more rent because a company has found a new way of planting with the owners to break the law,” said Garland.
